- Apple planning to move its productions from china to India
- Apple sees India as the new China because of its large population and low costs
- Apple also has conflicts with the US
Apple is planning to move its productions from China to India due to China’s strict COVID-19 guidelines, problems with the US government, and reduced dependability.
It has already told many of its contract manufacturers that it wants to increase production outside China. According to sources, Apple is again negotiating with contractors to search for places with new manufacturing abilities.
Surveys have indicated that more than 90% of Apple products such as iPhones, iPads, and MacBook computers are manufactured by independent contractors in China.
The reason why Apple sees India as the new China is because of its large population and low costs. Apple was working with the local government in China and ensured land, personnel, and supplies to make iPhones to the contractors with big plants.
China has very qualified workers in comparison to other many Asian countries but COVID-19 changed situations in China, specifically Shanghai which caused supply-chain difficulties. China has travel limitations and this makes it difficult for Apple to check production. Electricity power shortages have also given a bad reputation to China.
Apple has already Warne in April that coming back of COVID-19 can cause more problems for China. It made the statement “we continue to look for optimizing”.
The Wall Street Journal reported that Apple is considering India and Vietnam as alternatives to China, even though they all are just minor investors right now. When WSJ asked Apple’s spokesman about the conflicts with the US, he gave no comments.
In April, Apple’s CEO Tim Cook said, “our supply chains are truly global, and so the products are made everywhere”
